does Cost estimation assumes a linear relationship between

Answered question

2022-04-09

does Cost estimation assumes a linear relationship between total costs and the cost drivers

Answer & Explanation

nick1337

nick1337

Expert2022-06-08Added 699 answers

A cost driver is that factor or variable which has a cause and effect relationship with the total cost. The cost driver is the' cause,' and the 'total cost incurred' is its effect. If we take an example of the fuel cost of running a car, the cost driver (cause) would be 'No.

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